Sustainability

Climate Change Response

Carbon management

POSCO is aware that climate change response and carbon management are not only severe risks but also strategic opportunities that can improve corporate competitiveness. Accordingly, the company investigates risks and opportunities of climate change, and operates an internal system for systematic analysis and management. POSCO analyzes related risks and opportunities from multiple angles according to corporate risk management regulations, and reflects the results in POSCO's mid- and long-term strategies. Furthermore, POSCO clearly states in the investment management regulations that businesses with potential environmental risks, such as greenhouse gas emissions, must be discussed within specialized departments in making decisions about investment projects.

Risk & Opportunity Management Process for Carbon Management

  • STEP 1

    Identifying Risk and
    Opportunity Factors

    Identify Risk Factors

    • Pinpoint physical and regulatory risk factors
    • Assess level of risk and financial implications

    Discover Opportunity Factors

    • Identify opportunities in carbon market and new green businesses
    • Determine trends and strengthen risk management
  • STEP 2

    Establishing Carbon
    Management System

    • Establish the POSCO Carbon Management System (2006)
    • Build and managed a CO2 inventory with third-party verification
    • Build an integrated carbon and energy management system (2013)
    • Build a carbon accounting system (2014-2015)
  • STEP 3

    Implementing Climate
    Change Response Activities

    • Link activities to the enterprise-wide risk management
    • Discuss climate change risks when making investment decisions
    • Check POSCO Family companies' green business progress
  • STEP 4

    Check and Review Measures
    Against climate change

    • Regularly monitor the progress of GHG emission reduction activities
    • Check the status of response to climate change regulations and policy
    • Examine POSCO Family's status of new green businesses
  • STEP 5

    Reporting to Top
    Management

    • POSCO Family Environmental Management Committee (Annual)
    • Enterprise - wide Management Meeting on CO2 and energy indices (Monthly)

References about Climate change